Thomson Reuters (NASDAQ:TRI) Issues Earnings Results

Thomson Reuters (NASDAQ:TRI) issued its earnings results on Tuesday. The company reported $0.81 EPS for the quarter, missing analysts’ consensus estimates of $0.89 by ($0.08), Zacks reports. Thomson Reuters had a return on equity of 15.59% and a net margin of 20.02%. The company had revenue of $1.80 billion during the quarter, compared to the consensus estimate of $1.80 billion. During the same quarter in the prior year, the company earned $0.85 earnings per share. Thomson Reuters’s revenue was up 2.9% on a year-over-year basis.

Here are the key takeaways from Thomson Reuters’ conference call:

• Strong third-quarter momentum: Organic revenue growth accelerated to 10%, with the Big 3 segments also growing 10% for a second consecutive quarter. Adjusted EBITDA rose 10% to $651 million, while adjusted EPS increased 14% to $0.81.
• Full-year outlook raised: Thomson Reuters now expects approximately 9.5% total revenue growth and 8.5%–9% organic growth in 2026, up from its previous 8% outlook. The Big 3 growth outlook remains 9.5%–10%.
• AI adoption is accelerating: GenAI-enabled products accounted for 34% of annualized contract value, up from 24% a year ago. Next-generation CoCounsel Legal engagement, retention, usage, and customer satisfaction exceeded the prior product’s records, while CoCounsel Tax, Audit & Accounting and the Thomson large-language-model initiative broaden the growth opportunity.
• Near-term growth and margin dynamics are mixed: Fourth-quarter organic growth is expected to moderate to approximately 8% as Reuters laps prior AI licensing revenue and corporate transactional revenue normalizes. Management said it could achieve higher margins in 2027 but may reinvest operating leverage in AI, product development, sales, and market expansion, delaying some margin gains.
• Pagero and transactional compliance remain growth drivers: Pagero now supports e-invoicing requirements in more than 90 jurisdictions, with roughly 50 additional mandates expected over the next three years. Thomson Reuters said its broader transactional compliance business is growing at a rate in the teens and gaining market share.

Thomson Reuters Stock Performance

Shares of Thomson Reuters stock opened at $119.44 on Thursday. The company has a market capitalization of $51.76 billion, a PE ratio of 33.00, a P/E/G ratio of 2.12 and a beta of 0.69. The company has a 50-day simple moving average of $105.44 and a two-hundred day simple moving average of $97.18. Thomson Reuters has a one year low of $76.28 and a one year high of $143.52. The company has a debt-to-equity ratio of 0.12, a quick ratio of 0.51 and a current ratio of 0.51.

Thomson Reuters Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 18th will be issued a $0.6550 dividend. The ex-dividend date is Wednesday, November 18th. This represents a $2.62 dividend on an annualized basis and a yield of 2.2%. Thomson Reuters’s payout ratio is currently 69.68%.

Key Stories Impacting Thomson Reuters

Here are the key news stories impacting Thomson Reuters this week:

• Positive Sentiment: Canaccord Genuity raised its price target to $130.50 and maintained a “buy” rating, implying potential upside from the price cited in the report. BayStreet report
• Positive Sentiment: Organic revenue grew 10% in Q3, and generative AI products reached 34% of annualized contract value—evidence that adoption of the company’s newer tools is growing. Long-term investor takeaways
• Positive Sentiment: The company declared a quarterly dividend of $0.655 per share, payable December 10, supporting its income appeal. Dividend announcement
• Neutral Sentiment: JPMorgan raised its target to $115 but kept a “neutral” rating; that target was below the share price cited in its report. JPMorgan price target report
• Negative Sentiment: Q3 adjusted earnings of $0.81 per share missed the $0.89 consensus, while revenue of $1.80 billion was roughly in line with expectations. Reports also cited margin pressure and weaker cash flow as investment costs rise. Q3 results and cost concerns

Analyst Upgrades and Downgrades

Several research analysts have commented on TRI shares. Canaccord Genuity Group raised their price objective on Thomson Reuters from $129.50 to $130.50 and gave the stock a “buy” rating in a report on Wednesday. JPMorgan Chase & Co. upped their target price on Thomson Reuters from $110.00 to $115.00 and gave the stock a “neutral” rating in a report on Wednesday. Royal Bank Of Canada increased their price target on Thomson Reuters from $124.00 to $130.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 28th. TD Securities restated a “buy” rating on shares of Thomson Reuters in a research note on Thursday, August 6th. Finally, Scotiabank restated a “sector outperform” rating and issued a $135.00 price objective on shares of Thomson Reuters in a report on Thursday, August 6th. Eleven analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $128.96.

About Thomson Reuters

Thomson Reuters is a global provider of information, software and technology solutions for professionals and institutions. The company serves customers in the legal, tax, accounting, audit, corporate, government, risk and compliance sectors, as well as the media industry. Its offerings combine authoritative content with workflow tools, data analytics and artificial intelligence.

Key products and services include Westlaw and Practical Law for legal research and practice management; Checkpoint and ONESOURCE for tax and accounting professionals; Confirmation for audit-related workflows; and CoCounsel, an AI-assisted legal technology platform.